## Regression analysis

Under supervised learning techniques, the learning models that are categorized under statistical methods are instance-based learning methods, Bayesian learning methods, and regression analysis. In this chapter, we will focus on regression analysis and other related regression models. Regression analysis is known to be one of the most important statistical techniques. As mentioned, it is a statistical methodology that is used to measure the relationship and check the validity and strength of the relationship between two or more variables.

Traditionally, researchers, analysts, and traders have been using regression analysis to build trading strategies to understand the risk contained in a portfolio. Regression methods are used to address both classification and prediction problems.

We have covered some key statistical concepts in the earlier chapter; in this chapter, we will cover some more concepts that are quite relevant in the context of regression analysis. To name a...